The ACCC alleges Medibank ‘incorrectly rejected claims or eligibility enquiries from over 800 members for benefits that they were entitled to and were paying for’.
Photograph: Ellen Smith/AAP

The consumer watchdog has launched civil proceedings against Medibank, accusing the health insurance heavyweight of incorrectly telling customers they were not eligible for some benefits.

The Australian Competition and Consumer Commission claims Medibank told some “lite” or “boost” policy holders with its AHM subsidiary they were not eligible to cover for joint investigations or reconstruction procedures when in fact they were.

“We will allege that Medibank incorrectly rejected claims or eligibility enquiries from over 800 members for benefits that they were entitled to and were paying for,” ACCC chair Rod Sims said in a statement on Tuesday.